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A few of the FBS users and friends captured on the "trade show trail cam" between Louisville and San Antonio.

Thanks again for checking in at our exhibits at the National Farm Machinery Show and Commodity Classic this winter. We caught up on what was going on in your operation, and you got a first-hand update on our software as well as exposure to the Conservis mobile-cloud solution that connects with FBS software.

FBS User Conference, August 27-28, Moline, IllinoisMark your calendars and prepare to join us for this annual networking and training seminar. If you're interested in participating in an intensive, hands-on Hedge Accounting workshop preceding the main conference on August 26, email norm@fbssystems.com.

Prescription Farming for Your Financial Records Part III

Surveys of farm computer users reveal that they believe that accounting is their computer's most important function. Unfortunately, selection of the right farm accounting system has been a hit-and-miss exercise.Growth Path Accounting, introduced in the FarmSmart newsletter way back in 1985 and updated for 2014, provides the farm manager with step-by-step procedures for selecting and maintaining his accounting system.

The Growth Path concept assumes that:

Farmers have varying levels of accounting experience and time available for bookkeeping.

Each farmer's information goals are as unique and constantly changing as his farm business.

Farmer-accessible education and training are both scarce and expensive.

The first phase in Growth Path Accounting (GPA) is the determination of a starting system. To do that, you only need to answer two questions:

Where are you now?

What are your information goals?

Using this profile, GPA uses a "decision tree" to prescribe one of three growth paths leading to varying levels of practices and controls.

Step One: Where Are You Now?

To begin, you must review your past experience with accounting. The first "branch" in the decision tree simplifies this by asking Question One: "Is your current accounting method cash or accrual?"

You know you are currently cash if:

You are using accounting software which records only checks and deposits to a checking account.

Income and expense information is primarily used for tax reporting on the cash basis.

Inventories, production records and financial analysis are maintained outside of your accounting system.

If you already employ an on-site controller or CFO or you contract with a "virtual" accounting professional who oversees your monthly accounting processes then you have more capacity to move to the next level in your growth path than if either you or a family member withlimited accounting training and time availability is trying to accomplish this on your own. However, if your operation already includes a family member trained (and tasked) in accounting you've (potentially) got the best of both worlds.

Q. I received a patronage dividend in both stock and cash from my cooperative. How do I account for that in FBS?

A. This can all be accomplished with a two-line deposit to your bank account. The amount of the deposit will be for the net cash value that you received. The first line will be to an income account for stock and dividends and the gross value of the cash plus stock. The second line will go to your asset account for value of the stock received. See the example below where mycash value is $500 and my stock value is $500. My ledger account 380 is an income account and ledger account 185 is an asset account.

Tip: set up an S Center for each class of stock and record the number of shares you receive each year.Also, if you receive a stock certificate, scan it attach it to your deposit using the FBS Scanner Interface.

Sincerely,

FBS Systems

FBS Systems, Inc.
1855 55th Ave
Aledo,
IL
61231
US

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